Falling demand and price discounts sparked by cheap Chinese steel exports put Indian steel makers in a pinch

India’s steel industry is facing a crisis due to a flood of cheap Chinese steel imports. The country’s smaller steel mills, which account for 41% of total output, are struggling to compete with Chinese imports sold at up to 10% less than Indian offerings. As a result, capacity utilization has dropped by nearly a third, and small and medium-sized mills are considering job cuts. Jogindra Group’s mills in Punjab state, for example, have unsold inventory and are considering layoffs. The Indian Steel Association has warned that the influx of cheap Chinese steel could lead to the survival of the Indian steel industry, and has called for government action to curb imports. The government is considering imposing import curbs, which could take four to six months to implement. Meanwhile, big Indian producers like JSW Steel and Tata Steel are also concerned about the impact of Chinese imports on their business. The crisis is affecting not only small mills but also larger ones, with production cuts and layoffs expected in the coming months.